Conversion

How CPG brands are Building Community

how-cpg-brands-are-building-community

Customer interactions with brands are becoming increasingly digital, and CPG brands are at the forefront of this digital transformation. As competition is picking up, brands are battling it out to create a unique identity as well as remain successful with their community.

In order to remain profitable, CPG businesses know that they must interact with customers on a personal level. Moreover, by removing physical distances, they can create a sense of belonging to a digital community.

Why do businesses need to build a brand community?

Right now, these brands are a lifeline for consumers. CPG brands have already taken a step forward by acknowledging their customers and understanding what products and services are most important to them. Having an online community is beneficial because it:

  1. Gives people a sense of connection during social distancing
  2. Creates better brand awareness
  3. Increases engagement with current customers
  4. Helps to grow brand loyalty
  5. Provides an additional source of customer support
  6. Improves communications with customers

How CPG Brands are Building a Community

Competition in ecommerce is tough, even for CPG brands that sell primarily through marketplaces. But a lot of the challenges associated with this can be alleviated with technology that helps engage consumers with community content.

Businesses all over the world are enforcing best practices in order to retain customers. That’s why brands like Nature’s Bakery highlight community content on marketplace sites to boost conversions.

Not only does this draw consumers into a ‘closer’ network, but it also allows brands to keep a consistent look and feel across all channels. Instead of concentrating efforts on lead generation, they can direct their attention to the current customer base so that they can continue to make repeat purchases. For many, it’s a great way to slash the cost of marketing budgets by 10 – 25% per year.

Let’s take a closer look at what CPG brands are doing to stay on top of their game:

1. Develop and Maintain a Good Reputation

CPG brands are in a position where consumers are willing to engage and listen to them. But to remain top of mind with the consumer, they focus on developing and maintaining an untarnishable online reputation. Since customers trust each other more than they typically trust brands, leading CPG brands are highlight customer content with ratings and reviews to show authentic opinions about their products.

2. Stand Out as a Trusted Advisor

From tips to tricks, people need advice on how to resolve their issues. CPG brands provide vast amounts of easily accessible and valuable information on their sites. From recipes to usage tips, they inform individuals about everything the brand has to offer and more. By establishing a reputation as a trusted advisor, consumers are more receptive. This helps foster deeper, more authentic interactions while simultaneously increasing customer retention.

Screen Shot 2020 04 02 at 2.36.42 PM

Califia Farms showcases community content and recipes on their website to help engage site visitors who are interested in learning more about the brand.

3. Solve Modern Consumer Problems

It’s the era of information, and consumers are seeking answers to their questions or solutions to their problems. CPG brands take this in stride. They listen and respond to their customers in multiple ways, such as via phone calls, email, social media, online chats, etc. This is another place where owned digital communities can be extremely beneficial as it allows consumers to interact with each other and learn from each other.

4. Engage Authentically with Customers

CPG brands know that businesses that are the most engaged with their customers are the ones that get the most views and raving reviews. So they enhance engagement by replying to comments and answering questions. But they also encourage consumers to create and share content on social media platforms in order to promote a social identity around the brand.

5. Focus on Highlighting Philanthropy

Now more than ever, businesses depend upon a passionate and loyal audience to remain viable. But customers now make purchasing decisions based on brands that align with their values. Brands need to highlight their values and showcase how they’re working with their community to act on those values.

6. Are Always Transparent

Being transparent about everything related to the brand is a great way for CPG brands to establish credibility, increase loyalty, and spread positive reviews. Being honest about what goes into your products, it’s effects, and how it’s made goes a long way. But CPG brands take it a step further. They encourage consumers to freely discuss relevant topics and provide additional feedback about their products and services.

7. Create Content that Customers Want

Brands need to provide a compelling content experience if they want to build a community. Leading this charge is Red Bull, with their action-packed campaigns. People engage with Red Bull based on the content alone.

Screen Shot 2020 04 02 at 2.57.16 PM

Red Bull even features their content on recruiting pages.

By taking chances and creating a unique community-driven brand, CPG brands are able to build a solid community that translates into authentic brand affinity.

Building Brand Online to Produce the Halo Effect

Investing in a brand community creates a positive halo of brand ambassadors who feel connected to the brand. CPG companies are taking it as an opportunity to improve online reputation, boost customer retention, and become a trustworthy leader in their niche.

Just like all other CPG brands, your business depends on customers in order to survive and grow. Now’s the time to gain insights into your customers’ preferences and needs by highlighting their stories, and take your brand to greater heights.

Ashley Rosa is a freelance writer and blogger. Writing is her passion that why she loves to write articles related to the latest trends in technology and sometimes on health-tech as well.  She is crazy about chocolates. You can find her on twitter: @ashrosa2.

This article originally appeared in the Pixlee blog and has been published here with permission.

About the author

Steve Hutt

Steve has entrepreneurship in his DNA. In the early days of online commerce, he achieved Power Seller status at eBay, which then propelled him to become a founding partner of VisionPros.com, a contact lens, and eyewear retailer. After a successful exit from his startup, he embarked on his next journey into agency work in e-commerce and digital strategy.

Currently, Steve is part of the Merchant Success Team at Shopify Plus, where he is a Strategic Advisor helping brands continue to grow and scale with the Shopify Commerce Platform.

To maintain his competitive edge and life of learning mantra, Steve also hosts and produces a top-rated weekly podcast show, eCommerce Fastlane, where he interviews Shopify partners and subject matter experts who share the latest marketing strategy, platforms, and must-have apps, to help Shopify brands build and scale lifetime customer loyalty.